A good time for long term market entry(zhang xian ru shi de hao shi ji )

The increase and decrease of trading volume is closely related to the decline and prosperity of the stock market. Generally speaking, the period of busy trading is the peak stage of stock market, while the period of light trading is the low stage of stock price trend.

For short-term investors, only when the transaction is hot, can they hope to get short-term earnings. If we focus on long-term investment, we should not intervene in the busy period of trading, because in the busy period of trading, most of the stock prices are at the peak stage. At this time, the cost of intervening in stock purchase may be on the high side. Even if the stocks purchased are excellent performance stocks, we can get good stock returns, but because of the high cost of stock purchase, the relative rate of return on investment will decline.

If the long-term investors step in to buy stocks when the trading is light, they may not be able to obtain the profit of price difference in the short term. But in the long run, because of the low cost of investment, the relative return on investment will be much higher than the future stock return. Therefore, in the light trading period, for short-term investors, we should wait and see what happens, not act rashly. For long-term investors, it is a good time to enter the market.

Advocating that long-term investors buy stocks when the trading is light does not mean that they can buy stocks immediately when the trading is light. Generally speaking, the end of the off-season is the best time to buy. The problem is that no one can know exactly when the end of the off-season is. Maybe investors think it's the end of the off-season, but the market continues to be weak for quite a while; maybe they think they should wait another month or two to enter the market, but the market suddenly rises and misses the good opportunity.

Therefore, it is suggested that investors, especially large and medium-sized investors, should take a step-by-step downward buying approach when they enter the market in the off-season, that is, first buy half or one-third, and then buy more regardless of whether the market is going up or down. In this way, investors can not only enter the market in the off-season, but also lose the good opportunity to enter the market, and can receive the effect of spreading the cost.

Chinese PinYin : Zhang Xian Ru Shi De Hao Shi Ji